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Australian Politics Is Risky For Business

By

Cynthia Koons

Feb. 23, 2012 6:42 a.m. ET

Talk about political risk. Australia's leaders may be the biggest threat to the country's reputation.

Over the past few years, as much of the rest of the world has lurched from crisis to crisis, Australia has looked like a good bet. Its banks are rated among the world's safest. Its economy has been growing steadily thanks to the resources boom. Its housing market hasn't suffered a severe downturn. And the Australian dollar has soared.